I realize the conflict but I think it would be a jerk thing to do to cut his small commission in half. 

ITT had to shut down because they did not meet standards when dealing with federal loans - certainly not a "job cut" situation. 

This all depends on your ability to about 20 different things: outsourcing work, marketing, cost cutting, management, etc. 

Some anecdotal evidence - speaking to the gal at Lowe's who was cutting keys for me in Weaverville, she said finding anything south of $1200 for a 2/1 was tough and on retail salary she is priced out of the market.  

I agree with you, $40k is not going to cut it for a San Diego flip.

If I reduce my expenses and live frugally I can cut down how much rental income I need. 

I prefer to work smarter, not harder, and advertise exactly what I'm looking for, which usually cuts down on the "dud lead" calls I get.

They may short cut the fix, leave things wet, and create an environment for mold. letting an unqualified person work on electrical can be a huge liability if they get hurt or burn the place down.

Business is cut throats and some people just want you to lose.

But all this depends how much equity you think the property will have at that time, because ARMS can also get you in trouble...I also love the spreadsheet layout, very clear cut & precise with the numbers!